Dive Brief:
- Despite ongoing consumer concerns about inflation, grocers’ meat departments showed resilience in 2024, according to FMI — The Food Industry Association’s newly released State of Fresh report.
- In 2024, meat sales grew the most of all fresh food categories, increasing 4.7% to $105 billion, according to Circana data cited in the report. Produce followed with a nearly 4% boost, to $93 billion.
- Foodservice achieved record-breaking sales of $56 billion last year as retailers used the department as a key differentiator and consumers turned to it for convenience, value and variety, FMI noted.
Dive Insight:
As grocers strengthen their perimeter sales, the meat department is standing out as a category that has held onto shoppers amid economic woes, FMI noted.
In meat departments, shoppers spent more money and bought more items last year than they did the year prior. Average spending totaled $16.12 per visit, the report noted. FMI said that these stats are a testament to meat’s key role in driving shopper loyalty among grocers.
While inflation may have shifted consumers’ purchases in the meat department, worries about higher prices did not push shoppers away. Instead, consumers switched to different cuts of meat, brands and channels to rein in higher costs. FMI said grocers can tap new flavors, sourcing transparency, environmentally friendly options and leaner, less processed protein options to further attract consumers.
FMI noted that meat purchases largely happen in stores, making online sales an area that could use more innovation. The trade group also noted a discrepancy with local sourcing: 68% of surveyed retailers offer local meat assortments, but only 46% said they found it effective. These findings suggest that grocers may need stronger storytelling or clearer value propositions to help consumers connect with those options.
Meanwhile, foodservice continues to gain momentum in the grocery industry as both unit and dollar sales increased for foodservice last year. Signature items like rotisserie chicken, sandwiches and pizza are fueling trips to foodservice departments, FMI noted.
Grocers say they aim to continue investing in the department. More than two-thirds of food retailers (68%) plan to increase the amount of space allocated to foodservice aspects such as fresh-prepared grab-and-go options, according to the report.
The State of Fresh report is derived from the 2025 edition of FMI’s The Food Retailing Industry Speaks and “Power of” category reports, as well as Circana data.
